Regulation 109 Notional income – calculation and interpretation

where the period over which those earnings are to be taken into account is a year or more, an amount in respect of income tax equivalent to an amount calculated by applying to those earnings the F1... F2basic rate, or in the case of a Scottish taxpayer, the Scottish basic rate, of tax in the year of assessment less only personal reliefs to which the claimant is entitled under Chapters 2, 3 and 3A of Part 3 of the Income Tax Act 2007 as are appropriate to the claimant’s circumstances;

where F3... the period over which those earnings are to be taken into account is less than a year, the earnings to which the F4basic rateF5, or the Scottish basic rate, of tax is to be applied and the amount of the F6personal reliefs deductible under this paragraph are to be calculated on a pro rata basis;

where the weekly amount of those earnings equals or exceeds the lower earnings limit, an amount representing primary Class 1 contributions under section 6(1)(a) of the Contributions and Benefits Act F7, calculated by applying to those earnings the initial and main primary percentages in accordance with section 8(1)(a) and (b) of that Act F8; and

one-half of any sum payable by the claimant in respect of a pay period by way of a contribution towards an occupational or personal pension scheme.